Natural Disaster Fund (NDF) makes cat-in-a-polygon parametric payout after Beryl

The Natural Disaster Fund (NDF), a public-private partnership funded by UK and German governmental entities and managed by Global Parametrics, has made US $1.45 million in payouts in Grenada after a windspeed cat-in-a-polygon parametric arrangement was triggered by hurricane Beryl.

According to CelsiusPro, the parent company to Global Parametrics, the NDF has provided risk capacity to Corp-EFF Insurance Company Limited, supporting its distribution of a Flexible Hurricane Protection product, which provides protection against hurricanes in Dominica and Grenada.

Global Parametrics has structured the parametric insurance product as a hurricane windspeed cat-in-a-polygon.

The insurance policies are sold by Corp-EFF to households, small businesses, smallholder farmers (mainly nutmeg and cacao farmers), fisherfolk, and other micro- and meso-level risk holders, CelsiusPro explained.

Corp-EFF Insurance, is a subsidiary of Corporate Enterprise Finance Facility Ltd (Corp-EFF), and offers insurance solutions tailored to credit unions within the Organisation of Eastern Caribbean States (OECS).

CelsiusPro said that, “In the aftermath of hurricane Beryl’s path across the Caribbean, the NDF has swiftly released payouts exceeding USD 1.45 million to enable support for businesses and communities in Grenada, in particular nutmeg and cocoa small producers who were affected when Beryl hit Grenada as a Category 4 hurricane.”

The Natural Disaster Fund (NDF) has a mandate to provide risk capacity to support parametric insurance and risk transfer solutions that can enhance climate and natural catastrophe resilience for poor and vulnerable communities.

The NDF has a risk-sharing agreement with global reinsurance company Hannover Re.